The NAP financing strategy provides a structured approach to understanding the overall NAP financing needs and identifying potential sources of finance to bridge the country’s adaptation finance gap. It focuses on creating a comprehensive framework to secure the necessary funds for the entire NAP. The climate change adaptation investment plan primarily aims to identify a set of adaptation investments that are ready to implement, as well as specific funding sources and instruments needed for their implementation.
A NAP financing strategy covers the entire scope of the NAP, addressing the broader needs of the country’s adaptation efforts and, potentially, the associated costs for implementing its priorities across the full time horizon of a NAP. In contrast, the adaptation investment plan is typically narrower, focusing on specific sectors or geographic regions, and more time-bound. This targeted approach allows for a more detailed and actionable plan to pursue and secure immediate investment opportunities. Creating an adaptation investment plan for the entire NAP document may not be practical, as the detailed analysis required to identify, shape, and appropriately finance specific investment packages would be overwhelming.
The NAP financing strategy identifies the adaptation finance gap and serves as a guide for longer-term financial planning and resource mobilization. Conversely, the adaptation investment plan results in the creation of priority adaptation investment packages. These packages are detailed and ready for implementation, ensuring that the identified projects can move forward quickly.
While a NAP financing strategy typically spans a longer-term horizon and aligns with the overarching goals and timelines of the NAP, the adaptation investment plan often concentrates on the shorter term, prioritizing immediate to medium-term investments.
The NAP financing strategy provides a high-level estimation of financing needs for adaptation and an exploratory identification of potential sources and instruments. This approach is more about setting the stage for future investments and alignment with long-term national development planning rather than detailing specific projects. The adaptation investment plan involves the development of concrete, investment-ready adaptation packages, including specific funding sources and instruments. This level of detail ensures that the projects are thoroughly vetted and ready for implementation and potentially aligned with annual budgets and relevant medium term socio-economic policies (as outlined in national development plans).
The financing strategy offers a flexible framework that can adjust to evolving financial landscapes and emerging needs. In contrast, the adaptation investment plan typically focuses on predefined investments with specific funding requirements within a specific timeline, making it more rigid.
While the NAP financing strategy is usually led by the ministry in charge of the NAP process (typically the ministry responsible for environment and/or planning), the adaptation investment plan is usually led by the ministry of finance or the ministry of economy, reflecting its focus on immediate, actionable investments that could be easily mainstreamed into public investment management and budgeting systems.